Question

A principle of $3100 is invested at 6.5% interest, compounded annually. How much will the investment be worth after 12 years?

Answer 1

He gets 2418 dollars

Answer 2

`\bf ~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$3100\\ r=rate\to 6.5\%\to (6.5)/(100)\dotfill &0.065\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, thus once} \end{array}\dotfill &1\\ t=years\dotfill &12 \end{cases} \\\\\\ A=3100\left(1+(0.065)/(1)\right)^(1\cdot 12)\implies A=3100(1.065)^(12)\implies A\approx 6600.198`